Customer Value Heirarchy

Customer value hierarchy

Core benefit:

This is the most primary level in the customer value hierarchy. It is the essential benefit that the customer is paying for. There are no frills attached, just the core utilization for the customer is looking. Here the customer is looking for a medium through which one can wash clothes (not manually)

Basic Product:

 The next level in the customer value hierarchy is the Basic product. these are the fundamental components of your customer value package required just to be in business. The core benefit has to be converted into a product. In this case, the market needs to provide for a washing machine that will wash the clothes.

Expected Product:

The level after this is the expected product. Herein the company seeks to provide what the customers consider "normal" for you and your competitors. There are a certain set of conditions and characteristics that the customers are seeking for. In this particular case, the customer requires a basic washing machine that will have a water filling system, wash the clothes in a hygienic and clean manner, and drain out the water all in a given span of time. Also it should be convenient to manage.

Augmented Product:

At the fourth level of the hierarchy comes the augmented product. Added-value features which the customers know about and would like to have but don't necessarily expect because of the current level of performance of your competitors. This is the first level of possible differentiation and superiority over your competitors. In Whirlpool case it offers consistently friendly and responsible after service, accurate and honest information about the product, best stain removal ability with stain wash, different settings for different kinds of clothes. 

Potential Product:

At the fifth and last stage comes the potential product. Here come added-value features that go well beyond the learned expectations and desires the customer brings to the experience of doing business with you. In whirlpool case It may be unusually fast turn-around,  an  unusually  confidence-inspiring  guarantee, unusual expertise on the part of your  employees, advanced merchandise feature, etc. These are "surprise" features that can set you apart from your competitors and win the loyalty of  your  customers.